There are two types of donations that can be made to a 501(c)(3) Organization. A cash donation is the transfer of funds to a nonprofit. An in-kind donation is the transfer of any other type of asset.
In-kind gifts are contributions of goods or services, other than cash grants. Examples of in-kind gifts include:
- Goods, like computers, software, furniture, and office equipment, automobile, landed properties, housing, etc.
- Services, like meeting space, photocopy and mail services, and administrative/financial support
- Expertise, like legal, tax, or business advice; marketing and website development; and strategic planning
- Cash equivalents, like stocks, bonds, and mutual funds
Corporations and businesses are a common source of in-kind gifts. In fact, corporations increasingly prefer to provide in-kind support. Thus, if your funding needs include in-kind support, this may help to start a relationship with African Missions North America.
Please note, in-kind gifts must be accounted for differently than cash for tax purposes, we also issue a donation receipt so be sure to consult a tax expert.